A price or price range at which technicians expect the price of a security to bounce one or more times before breaking through to the upside. Resistance is typically caused by an abundance of sellers and a shortage of buyers at that price level. Technicians believe that the strength of a resistance point is determined by the significance of the trading that created it. For example a trading range that spanned many months will present more resistance to price penetration than the trading range for the previous day.
Browse by Subjects
speed resistance lines (SRL)
See All Related Terms »
call money market
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):